Local explorer Primary Gold has purchased a gold mine from Adelaide-based MacPhersons Resources for $10 million in cash and shares.
Primary will pay $5 million in cash and will issue 40 million shares at 12.5 cents each (equal to $5 million) to wholly acquire MacPhersons’ Coolgardie gold assets in the Goldfields.
Perth-based Primary has entered into discussions with potential contract miners and plans to process ore through nearby toll treatment facilities.
The explorer hopes to become a gold producer by as early as next year.
“The Coolgardie project represents an exciting opportunity for Primary to potentially become an established producer in 2017,” executive director Patrick Walta said.
“The company now also has a strategic base to grow its business in WA while continuing to develop its flagship Mount Bundy gold project in the Northern Territory.”
MacPhersons managing director Jeffrey Williams said the sale of the assets were part of the company’s plan to focus on its Nimbus silver and Boorara gold projects, located east of Kalgoorlie.
“In addition, we will now be able to take advantage of our highly prospective exploration tenements adjacent to the Kalgoorlie super pit and minimise our financial commitments outside our core advanced projects,” he said.
Primary shares were 3.7 per cent lower to 13 cents each, while MacPhersons shares were unchanged at 11 cents each at the close of trade.
